As AFCA logs record volume of complaints, broking industry figurehead stresses the importance of trust
Australians lodged a record 119,949 complaints with the Australian Financial Complaints Authority (AFCA) in 2025–26 – the highest number since the scheme began and the third consecutive year complaint volumes have exceeded 100,000.
The figures point to sustained cost-of-living pressure across the financial system and have prompted a response from the Finance Brokers Association of Australia (FBAA), which says the data underscores the value of rigorous compliance and client-focused advice.
AFCA chief customer officer Deborah Jenkins (pictured) said the scale of the complaints “highlight the impact that ongoing cost-of-living challenges and economic uncertainty are having on consumers, and the flow-on effects these conditions can have across the financial system”, adding: "Every complaint represents someone's experience, and collectively they provide a view of where consumers are struggling."
Where the complaints are coming from
Banking and finance remained AFCA's largest complaint category, with 66,971 complaints – up 23% on the previous year. Within that category, financial difficulty complaints rose 17% and credit reporting complaints climbed 22%, with AFCA noting a steep rise in recent months.
General insurance complaints reached 36,022, up 5%, while superannuation disputes jumped 42% to 8,755 and investments and advice complaints surged 56% to 6,542 – largely driven by the collapse of the Shield Master Fund and First Guardian investment schemes.
The three most complained-about products across the year were personal transaction accounts; motor vehicle insurance; and credit cards, with delays in claim handling, service quality and claim rejections the leading issues.
Scam complaints rose 12% to 6,706, reversing a decline the previous year. Since AFCA began operating in 2018, it has received about 690,000 complaints and helped secure $2.6 billion in compensation or refunds for consumers and small businesses.
FBAA points to compliance and client care
Responding to the data, FBAA chief executive Leo Gagic said the increase across banking, insurance, superannuation and investments reinforced why compliance and due diligence matter, as is “putting clients at the centre of every recommendation”.
"While complaint volumes continue to increase across banking, insurance, superannuation and investments, the majority of finance brokers continue to demonstrate the high standards of professionalism, care and transparency that clients expect,” said Gagic.
He praised the many brokers “who consistently take the time to understand their clients' objectives, financial circumstances and individual requirements before providing guidance”, adding that adequate due diligence, robust compliance practices and clear communication “are not just regulatory obligations, they are the foundation of trust”.
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Client communication was central to reducing disputes, added Gagic. "When clients feel informed, understood and supported throughout the lending journey, the likelihood of misunderstandings and disputes is significantly reduced.
“The result is stronger client relationships, greater transparency, and better outcomes for everyone involved. As AFCA itself notes, many complaints stem from communication, service quality and process-related issues. This serves as a reminder that getting the fundamentals right continues to be one of the most effective forms of complaint mitigation."
The comments come as brokers navigate a widening compliance workload, including the FBAA's recent regulatory engagement with AUSTRAC over anti-money laundering obligations.
Jenkins said AFCA would continue sharing complaint insights with firms so they can identify emerging issues early. AFCA's preliminary data snapshot, current to 30 June, may be revised once its full Annual Review is published later this year.
